cdma--Illinois Superconductor Announces Dramatic Results
from CDMA Installation
Anticipate Increased Revenues to Result
MOUNT PROSPECT, Ill., May 20 /PRNewswire/ -- Illinois Superconductor Corporation (Nasdaq: ISCO - news), a leading
supplier of superconducting technology for the wireless telecommunications industry, today announced dramatic range
extension and performance improvements resulting from the installation of ISC's SpectrumMaster® Classic filter in a Code
Division Multiple Access (CDMA) commercial cell site in the United States. The high performance filter test was undertaken by
a major cellular operator, which has elected to purchase the test unit at the conclusion of the trial. The operator is conducting
additional testing which may lead to the widespread deployment of ISC's technology throughout its CDMA system.
In the evaluation, the SpectrumMaster® Classic filter was installed in a rural site along a major interstate highway. Documented
results showed that the SpectrumMaster® Classic dramatically expanded the cell site' coverage by 25%. Further analysis
shows that the SpectrumMaster® Classic could extend coverage by up to 125%, however the test was limited by the proximity
of other cell sites which handled calls that might otherwise have been carried by the original site. This suggests that cell sites
could be significantly farther apart, saving capital and maintenance expense associated with construction of unnecessary sites.
Other documented benefits of the test included decreased dropped and blocked calls, and significantly lower handset transmit
power (3-5dB), which can increase cell capacity and extend cell phone talk time.
The SpectrumMaster® Classic is ISC's award winning filter system which provides 100 times better filtering than any other
commercially available filter system on the market today.
''This CDMA installation demonstrates the clear and substantial benefits to be gained by the use of our high performance
products,'' commented Ted Laves, president and CEO of Illinois Superconductor. ''A 25% increase in cell site range and a
dramatic reduction in handset transmit power levels should significantly increase cell site revenues for CDMA operators. Based
upon these results, we believe that our filters can provide payback in less than two months after installation, which is certainly a
cost effective investment for our customers. We are especially pleased that our SpectrumMaster® Classic is ideally suited for
deployment in CDMA systems because there currently appears to be no other product offering of this type.''
CDMA digital deployment is exploding as many wireless operators convert their analog networks to digital. Worldwide
CDMA customers number almost 30 million, while the North American market grew more than 400% last year to nearly 9
million customers. This market growth translates to intense competitive pressure for operators to upgrade their networks to
provide higher quality service at lower prices.
Laves continued, ''With nearly 60,000 cell sites throughout the United States, many of which are implementing CDMA
technology, ISC is well suited to assist operators in cost effectively implementing this important new technology. We expect that
growing CDMA sales will fuel ISC's revenue growth in 1999.''
Illinois Superconductor Corporation is a leader in the commercialization of high temperature superconducting technology for the
wireless telecommunications industry. The Company develops, manufactures, and markets radio frequency (RF) products to
enhance the quality and capacity of cellular telephone, personal communications services, and other wireless
telecommunications services. With more than 30 different configurations, ISC is well equipped to satisfy the demanding and
ever changing technological requirements of both rural and urban applications of carriers nationwide. The benefits of the ISC
products have been clearly documented by a number of customers including: increased coverage (as much as 70%), increased
revenues per cell site (as much as 18% based on minutes per use), easier location of new cell sites due to facilitation of
colocation, overall improved voice quality, and dramatic reduction in dropped calls (up to 40%). More information about
Illinois Superconductor Corporation is available on the Company's internet web site at ilsc.com.
Statements contained in this news release that are not historical facts are forward-looking statements. Such forward-looking
statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect
the Company's current expectations regarding the future results of operations, performance and achievements of the Company.
The Company has tried, whenever possible, to identify these forward-looking statements by using words such as ''anticipates,''
''believes,'' ''estimates,'' ''expects,'' ''plans,'' ''intends'' and similar expressions. These statements reflect the Company's
current beliefs and are based on information currently available to it. Accordingly, these statements are subject to certain risks,
uncertainties, and contingencies which could cause the Company's actual results, performance or achievements for 1999 and
beyond to differ materially from those expressed in, or implied by, such statements. These important factors include, without
limitation, the Company's ability to obtain additional financing in the near future; the Company's history of net losses and the
lack of assurance that the Company's earnings will be sufficient to cover fixed charges in the future; the degree to which the
Company is leveraged and restrictions imposed on the Company under its existing debt instruments which may adversely affect
the Company's ability to finance its future operations, to compete effectively against better capitalized competitors and to
withstand downturns in its business or the economy generally; the Company's current inability to satisfy the minimum
maintenance requirements for the continued listing of its shares of common stock for trading on the Nasdaq National Market,
which may have a material adverse effect on the liquidity of the Company's common stock and the Company's ability to obtain
additional funding as needed if such shares are delisted; continued downward pressure on the prices charged for the
Company's products due to competition of rival manufacturers of filters for the wireless telecommunications market; the timing
and receipt of customer orders; the Company's ability to attract and retain key personnel; and the effects of legal proceedings.
A more complete description of these risks, uncertainties and assumptions are included in the Company's filings with the
Securities and Exchange Commission, including those described under the heading ''Risk Factors'' in the Company's Annual
Report on Form 10-K for the year ended December 31, 1998. The Company undertakes no obligation to update or revise
these forward-looking statements to reflect new events or uncertainties.
SOURCE: Illinois Superconductor Corporation
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